ISLE REPORT CARD

Takeaway: Nothing to see here. Quarter was not good but expectations were low.

In an effort to evaluate performance and as a follow up to our YouTube, we compare how the quarter measured up to previous management commentary and guidance

 

 

OVERALL

  • WORSE:  EBITDA missed due primarily to Lake Charles and Waterloo.  Stock is up showing the "soft bigotry of low expectations"

 

CAPE GIRARDEAU

  • SAME:  expects the $135 million facility to open by November 1, two months ahead of the initial schedule.  

ROOM RENOVATION

  • SAME:  $15 million refurbishment of the main hotel tower in Lake Charles will be done by end of 2012.  In Black Hawk, $2 million of carpet, wall coverings, furniture and fixtures is expected to be complete by December 1, 2012.
  • PREVIOUSLY:  "We're currently renovating rooms in Lake Charles and Black Hawk, and adding a new Lone Wolf Bar in Waterloo "

LADY LUCK REBRAND AT VICKSBURG

  • SAME:  $5 million Lady Luck Casino rebranding will be done by the end of F2Q 2013 
  • PREVIOUSLY:  "Our Lady Luck rebrand at Vicksburg will be completed about the same time as the expected opening at Cape Girardeau, with upgrades that will enhance the customer experience, including a Lone Wolf bar and Otis and Henry's casual dining restaurant."

VICKSBURG PERFORMANCE

  • WORSE:  Heavy construction impacted F1Q results.  Performance should improve as construction subsides later in 2012
  • PREVIOUSLY:  "Vicksburg, we think we've turned the corner. We have made some improvements to the staff." 

KANSAS CITY PROMOTIONAL ACTIVITY

  • SLIGHTLY WORSE:  Kansas City properties continue to face increased competitive pressures from the new competition
  • PREVIOUSLY:  [Kansas City Speedway opening promotional activity] "It hasn't got completely out of hand, but we don't necessarily expect anything long-term, but we have seen an uptick there.”

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